Section 5: RENEWAL OF PROSPECTING LICENCE

Upon written application by the Company not later than six (6) months prior to the expiration of a Prospecting Licence, the Company shall be entitled to the renewal of that Prospecting Licence for a further period of two (2) years from and after such expiration date upon the same terms and conditions as herein above provided for, except in respect of the working obligations and annual rent payable by the Company under Clause 4(c) and Clause 4(e) hereof, which are to be agreed upon, and provided that the Company is not then in default under any of the terms and conditions of the Prospecting Licence or this Agreement. But the said renewal for a further period of two (2) years will only be granted if the Company has applied under Clause 2 of this Agreement for an Additional Mining Lease in respect of an area included in such Prospecting Licence.